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City Developments’ Q2 profit falls 15.3% on-year to S$139.9m

Posted on 14 Aug 2009 | Comments Off

City Developments Limited (CDL) has become the latest property heavyweight to give a bullish outlook for the property sector. Executive chairman Kwek Leng Beng said on Thursday the recent strong home sales momentum is sustainable.

The comment came as CDL booked a 15 per cent drop on-year in second quarter earnings to S$139.9 million – its fifth straight quarter of decline. Revenue, meanwhile, rose by less than 1 per cent to S$787 million.

Mr Kwek said: “If you read our first half results, we made a statement saying the market was recovering. But even I myself who believed in that didn’t expect the market to recover so fast. But it did recover. So my view is that unless something drastic happens again, the market is moving and recovering.”

CDL believes that the strong residential sales momentum is sustainable and the outlook is promising. As a group, it sold about 500 units between Continue reading →

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Tagged CDL, City Developments, Developers

CDL expects to start South Beach in Q3 ‘10

Posted on 14 Aug 2009 | Comments Off

Q2 net profit falls on lower development margins, weaker hotel showing

CITY Developments Ltd (CDL) executive chairman Kwek Leng Beng says construction of the delayed South Beach project is likely to begin around the third quarter of next year, with CDL and new investor Nan Fung group of Hong Kong probably the ones that will pump in further money.

CDL’s two earlier joint-venture partners in South Beach, El-Ad Group and Dubai World, are likely to be passive investors who may then see their share in the project diluted. ‘I think they have other priorities,’ Mr Kwek said on the sidelines of CDL’s Q2 results briefing yesterday.

The group posted a 15.3 per cent drop in net earnings to $139.98 million and a 32.4 per cent decline in first-half net profit to $223.1 million due to lower profit margins from property development and a weaker showing from its hotels business, which was hit by the global economic slump. Continue reading →